Over the last few months, Juan and his colleagues have analyzed the current business situation,
admin
101.
Over the last few
months, Juan and his colleagues have analyzed the current business situation,
and then identified target markets for his firm’s personal care products. Finally,
they developed the products, prices, distribution and promotion that should
appeal to each of those target markets. In doing so, Juan has also identified
what he believes is an advantage his competitors cannot match. Juan and his
colleagues have been developing:
A.
a business
mission statement
B.
a strategic
vision
C.
team-building
exercises
D.
a marketing
strategy
E.
competitive
assessments
102.
Gerald’s Tire Store
sets itself apart from competitors by the extra attention it pays to
providing fast, courteous service in a clean, professional looking
environment. Gerald’s has used this strategy for over 40 years, expanding to
15 outlets. Gerald’s Tire Store has created a ___________________ to create
and deliver value and to develop a sustainable competitive advantage.
A.
segmentation
strategy
B.
set of
metrics
C.
market
development strategy
D.
diversification
strategy
E.
macro, or
overarching, strategy
103.
Which of the
following is the best way to build a sustainable competitive advantage using
product excellence?
A.
Being the
first to offer customers desired features, even if competitors can copy
them easily.
B.
Positioning
the product using a clear, distinctive brand image.
C.
Having the
most features on each model.
D.
Focusing on
being cutting edge and continually eliminating older features that are
still in use by customers.
E.
Copying the
market leader’s features, but at a lower cost.
104.
A competitive
advantage based on location is often sustainable because:
A.
mobile
marketing has not yet proven its value for most customers.
B.
real estate
prices have been dropping.
C.
few marketers
are aware of its importance yet.
D.
it is not
easily duplicated.
E.
the internet
has diminished the importance of “brick and mortar” stores.
105.
Four companies
dominate the cereal industry. These firms produce in large volumes, promote
heavily, and control access to the supermarket shelves through “slotting
allowances,” which are payments to retailers in return for shelf space.
Combined, these four firms have:
A.
identical
marketing mixes.
B.
all of these.
C.
a sustainable
competitive advantage.
D.
achieved
product excellence.
E.
violated laws
governing competition.
106.
Value creation
through Place decisions for a consumer product involves:
A.
putting the
product in the front of the store.
B.
designing
creative displays to capture consumers’ attention.
C.
pricing
products differently at different stores.
D.
making sure
the product is available in the stores where customers will want to find
it, and that it is always in stock so they can buy it when they want to.
E.
focusing
exclusively on internet sales to reduce supply chain costs.
107.
In recent years,
cellular (mobile) service providers have worked hard to eliminate “dead
zones,” providing customers with service wherever they traveled. By
working to make the network available in more locations, cellular service
companies were focusing on __________ value creation.
A.
product
B.
price
C.
promotion
D.
place
E.
financial
108.
When firms
successfully implement poor strategies (perhaps due to good luck) or do a
poor job of implementing good strategies, it can be difficult to:
A.
generate
cost-based performance ratios.
B.
evaluate
performance and make adjustments.
C.
increase
product excellence without reducing customer excellence.
D.
develop
segmentation strategies.
E.
choose a
business mission.
109.
In 2007, Apple
Computer Company introduced its new iPhone, adding a cellular telephone, a
camera, and Internet access to its iPod. The company was pursuing a(n)
__________ strategy.
A.
market
development
B.
market
penetration
C.
operational
excellence
D.
customer
excellence
E.
product
development
110.
The goal of a
customer excellence strategy is to gain loyal customers. Customer loyalty can
be developed through:
A.
having a
strong brand
B.
offering
unique merchandise
C.
providing
superior customer service
D.
all of these
E.
none of these
111.
Allen is in the
marketing department of a mid-sized firm that develops and sells
communications systems. He is proud of the Human Resources area in the company
that provides the firm with excellent employees. Allen himself really enjoys
his work, but he knows the work of HR helps create an advantage for the firm
because:
A.
customers
appreciate the kind of service that knowledgeable employees provide.
B.
employees
play a major role in the success of the firm.
C.
it is easier
to communicate with and inspire the customer if the employees believe in
what the firm is doing.
D.
building
customer loyalty depends on a committed workforce.
E.
All of these.
112.
In its Campaign for
Real Beauty, Dove was able to connect with important parts of its customer
base by:
A.
creating high
impact campaigns at a lower cost.
B.
expanding
beyond traditional constraints of advertising.
C.
connecting
directly with customers via the internet.
D.
All of these
E.
None of these
113.
After performing an
STP analysis, marketers implement ____________ for each target market.
A.
pricing
strategies
B.
promotion
strategies
C.
place
strategies
D.
product
strategies
E.
all of these
114.
Brad is reviewing
the performance of his franchise sandwich store. As a franchisee, he has
access to comparative data from other stores. Brad will likely look at
____________ data for other stores to help him to evaluate his
performance.
A.
sales
B.
gross margin
C.
number of
customers
D.
coupon
redemption
E.
all of above
115.
Portfolio analysis
is a useful and powerful tool, but firms often need to take a more balanced
approach because:
A.
measures are
difficult to obtain and project.
B.
classifications
can become self-fulfilling prophecies and strengths and weaknesses are
distorted.
C.
substitute
approaches can offer different insights.
D.
All of these.
E.
None of
these.
116.
Starbucks has
developed a number of metrics beyond purely financial metrics. Knowing the
importance of perceptions and knowing the importance of developing ways to
demonstrate its activity, Starbucks tries to find clear ways to:
A.
build brand
equity.
B.
demonstrate
its sense of corporate social responsibility.
C.
address
concerns of opponents at local, regional, national and global levels.
D.
help
consumers to feel better about their purchases.
E.
All of these
117.
Greta is the
marketing director for the Pump-N-Slurp convenience store chain. She recently
developed a marketing plan for the firm and presented it to company
executives. Which of the following did Greta probably include in Pump-N-Slurp’s
marketing plan?
A.
Specific
plans for each of the four Ps.
B.
Marketing
objectives.
C.
Opportunities
for the firm.
D.
Perceived
weaknesses of the firm.
E.
All of these.
118.
Marketers want their
firms to develop efficient operations because this kind of efficiency:
A.
usually leads
to lower prices or greater pricing flexibility.
B.
allows the
firm to offer greater value to customers.
C.
makes it
easier to get the products customers want to them when they want them.
D.
can lead to
more attractive margins.
E.
All of these
Essay Questions
119.
Of what use is a
sustainable competitive advantage to a firm?
120.
The text states,
“Viewing customers with a lifetime value perspective, rather than on a
transaction-by-transaction basis, is the key to modern customer retention
programs.” Create an example demonstrating a lifetime value perspective.
Why is customer retention almost always a profitable marketing
strategy?
101.Over the last few
months, Juan and his colleagues have analyzed the current business situation,
and then identified target markets for his firm’s personal care products. Finally,
they developed the products, prices, distribution and promotion that should
appeal to each of those target markets. In doing so, Juan has also identified
what he believes is an advantage his competitors cannot match. Juan and his
colleagues have been developing:
A.a business
mission statementB.a strategic
visionC.team-building
exercisesD.a marketing
strategyE.competitive
assessments102.Gerald’s Tire Store
sets itself apart from competitors by the extra attention it pays to
providing fast, courteous service in a clean, professional looking
environment. Gerald’s has used this strategy for over 40 years, expanding to
15 outlets. Gerald’s Tire Store has created a ___________________ to create
and deliver value and to develop a sustainable competitive advantage.
A.segmentation
strategyB.set of
metricsC.market
development strategyD.diversification
strategyE.macro, or
overarching, strategy103.Which of the
following is the best way to build a sustainable competitive advantage using
product excellence?
A.Being the
first to offer customers desired features, even if competitors can copy
them easily.B.Positioning
the product using a clear, distinctive brand image.C.Having the
most features on each model.D.Focusing on
being cutting edge and continually eliminating older features that are
still in use by customers.E.Copying the
market leader’s features, but at a lower cost.104.A competitive
advantage based on location is often sustainable because:
A.mobile
marketing has not yet proven its value for most customers.B.real estate
prices have been dropping.C.few marketers
are aware of its importance yet.D.it is not
easily duplicated.E.the internet
has diminished the importance of “brick and mortar” stores.105.Four companies
dominate the cereal industry. These firms produce in large volumes, promote
heavily, and control access to the supermarket shelves through “slotting
allowances,” which are payments to retailers in return for shelf space.
Combined, these four firms have:
A.identical
marketing mixes.B.all of these.C.a sustainable
competitive advantage.D.achieved
product excellence.E.violated laws
governing competition.106.Value creation
through Place decisions for a consumer product involves:
A.putting the
product in the front of the store.B.designing
creative displays to capture consumers’ attention.C.pricing
products differently at different stores.D.making sure
the product is available in the stores where customers will want to find
it, and that it is always in stock so they can buy it when they want to.E.focusing
exclusively on internet sales to reduce supply chain costs.107.In recent years,
cellular (mobile) service providers have worked hard to eliminate “dead
zones,” providing customers with service wherever they traveled. By
working to make the network available in more locations, cellular service
companies were focusing on __________ value creation.
A.productB.priceC.promotionD.placeE.financial108.When firms
successfully implement poor strategies (perhaps due to good luck) or do a
poor job of implementing good strategies, it can be difficult to:
A.generate
cost-based performance ratios.B.evaluate
performance and make adjustments.C.increase
product excellence without reducing customer excellence.D.develop
segmentation strategies.E.choose a
business mission.109.In 2007, Apple
Computer Company introduced its new iPhone, adding a cellular telephone, a
camera, and Internet access to its iPod. The company was pursuing a(n)
__________ strategy.
A.market
developmentB.market
penetrationC.operational
excellenceD.customer
excellenceE.product
development110.The goal of a
customer excellence strategy is to gain loyal customers. Customer loyalty can
be developed through:
A.having a
strong brandB.offering
unique merchandiseC.providing
superior customer serviceD.all of theseE.none of these111.Allen is in the
marketing department of a mid-sized firm that develops and sells
communications systems. He is proud of the Human Resources area in the company
that provides the firm with excellent employees. Allen himself really enjoys
his work, but he knows the work of HR helps create an advantage for the firm
because:
A.customers
appreciate the kind of service that knowledgeable employees provide.B.employees
play a major role in the success of the firm.C.it is easier
to communicate with and inspire the customer if the employees believe in
what the firm is doing.D.building
customer loyalty depends on a committed workforce.E.All of these.112.In its Campaign for
Real Beauty, Dove was able to connect with important parts of its customer
base by:
A.creating high
impact campaigns at a lower cost.B.expanding
beyond traditional constraints of advertising.C.connecting
directly with customers via the internet.D.All of theseE.None of these113.After performing an
STP analysis, marketers implement ____________ for each target market.
A.pricing
strategiesB.promotion
strategiesC.place
strategiesD.product
strategiesE.all of these114.Brad is reviewing
the performance of his franchise sandwich store. As a franchisee, he has
access to comparative data from other stores. Brad will likely look at
____________ data for other stores to help him to evaluate his
performance.
A.salesB.gross marginC.number of
customersD.coupon
redemptionE.all of above115.Portfolio analysis
is a useful and powerful tool, but firms often need to take a more balanced
approach because:
A.measures are
difficult to obtain and project.B.classifications
can become self-fulfilling prophecies and strengths and weaknesses are
distorted.C.substitute
approaches can offer different insights.D.All of these.E.None of
these.116.Starbucks has
developed a number of metrics beyond purely financial metrics. Knowing the
importance of perceptions and knowing the importance of developing ways to
demonstrate its activity, Starbucks tries to find clear ways to:
A.build brand
equity.B.demonstrate
its sense of corporate social responsibility.C.address
concerns of opponents at local, regional, national and global levels.D.help
consumers to feel better about their purchases.E.All of these117.Greta is the
marketing director for the Pump-N-Slurp convenience store chain. She recently
developed a marketing plan for the firm and presented it to company
executives. Which of the following did Greta probably include in Pump-N-Slurp’s
marketing plan?
A.Specific
plans for each of the four Ps.B.Marketing
objectives.C.Opportunities
for the firm.D.Perceived
weaknesses of the firm.E.All of these.118.Marketers want their
firms to develop efficient operations because this kind of efficiency:
A.usually leads
to lower prices or greater pricing flexibility.B.allows the
firm to offer greater value to customers.C.makes it
easier to get the products customers want to them when they want them.D.can lead to
more attractive margins.E.All of these
Essay Questions
119.Of what use is a
sustainable competitive advantage to a firm?
120.The text states,
“Viewing customers with a lifetime value perspective, rather than on a
transaction-by-transaction basis, is the key to modern customer retention
programs.” Create an example demonstrating a lifetime value perspective.
Why is customer retention almost always a profitable marketing
strategy?
