Strong supplier relations and efficient supply chains help firms such as Walmart to achieve operational excellence.
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True / False Questions
1.
Strong supplier
relations and efficient supply chains help firms such as Walmart to achieve
operational excellence.
True False
2.
To build a sustainable
competitive advantage, companies should focus on a single strategy.
True False
3.
It is not always
necessary to go through all the steps in the marketing planning
process.
True False
4.
A mission statement
describes the specific actions a firm will take to achieve its goals.
True False
5.
iTunes software is
often credited for the success of the Apple iPod MP3 player, because it made
the iPod easier to use than competing players, and was difficult for
competitors to duplicate. This is an example of a sustainable competitive
advantage.
True False
6.
STP refers to
segmentation, testing, and promotion.
True False
7.
The components of a
SWOT analysis are Strengths, Weaknesses, Opportunities and Tactics.
True False
8.
Firms are typically
more successful when they focus on opportunities that build on their
competitors’ strengths.
True False
9.
Duke’s is a
surfer-themed restaurant chain in Hawaii. Most of its customers are tourists.
In a SWOT analysis for Duke’s, the possibility that the recession might cut
back on tourism in Hawaii would be considered a Weakness.
True False
10.
Price should be
based on the value that the customer perceives.
True False
11.
Geraldo manages the
electrical turbine engine division of General Electric Corporation. He makes
most decisions independently, without consulting headquarters. Geraldo
manages a strategic business unit.
True False
12.
The marketing
planning process always proceeds sequentially through the five steps.
True False
13.
Isaac is looking for
ways to offer new goods and services to his existing customers. He is
pursuing a market development strategy.
True False
14.
If Starbucks decided
to start selling organic meals to corporate eating facilities, it would be
pursuing a diversification strategy.
True False
15.
Sandisk’s MP3 player
product line (called the Sansa) has a low relative market share. The MP3
player market is expected to decline over the next few years. In BCG
portfolio analysis, the Sansa would be considered a dog.
True False
16.
The “Implement
Marketing Mix” step of the strategic marketing planning process is part
of the control phase.
True False
Multiple Choice Questions
17.
If a firm wants to
develop a sustainable competitive advantage, it should:
A.
begin an
aggressive campaign to buy up competitors.
B.
copy the
innovative features of other firms that are attractive to customers.
C.
examine its operations
and customer relations to identify significant things competitors cannot
easily copy.
D.
increase its
marketing budget so that it outspends its competitors.
E.
arrange to
meet with competitors to discuss how to avoid direct competition.
18.
Which of the
following is NOT one of the four overarching strategies to create and deliver
value and to develop sustainable competitive advantage?
A.
Locational
excellence
B.
Customer
excellence
C.
Operational
excellence
D.
Product excellence
E.
Planning
excellence
19.
When Ramona, the
keynote speaker at a major business leaders’ conference, arrived in the
middle of the night at the Ritz-Carlton, she was exhausted and her suit was
wrinkled from her ten-hour plane trip. The night clerk found someone to dry
clean Ramona’s suit and have it ready for her morning presentation. She has
been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton
demonstrated the macro strategy of:
A.
customer
excellence
B.
operational
excellence
C.
product
excellence
D.
promotional
excellence
E.
global
excellence
20.
Taking steps to
encourage customer loyalty is one way to:
A.
test new
products.
B.
promote
efficiency.
C.
sustain an
advantage over competitors.
D.
develop new
pricing strategies.
E.
improve
supply chain effectiveness.
21.
Some banks have
begun offering special accounts designed to attract junior high school
students. These kids save in such small amounts that the accounts cost banks
more to maintain than they are worth. But bankers know that consumers are
creatures of habit and hope that the young people they serve now will become
adult customers. These banks recognize:
A.
that
operational excellence is an important macro strategy.
B.
the lifetime
value of customers.
C.
that product
excellence leads to loyal customers.
D.
the
importance of making decisions based on short-term results.
E.
that as long
as customers bring in some revenue, costs do not matter.
22.
Narbonne’s, an
upscale department store, instructs sales personnel that whenever a customer
asks where something is, they should drop what they are doing and offer to
escort the customer to what they are looking for. The company’s reputation
for excellent customer service has probably resulted in:
A.
product
design excellence.
B.
mission
statement satisfaction.
C.
sustainable
price decreases.
D.
a sustainable
competitive advantage.
E.
producer
excellence.
23.
Firms achieve
___________ through efficient procedures and excellent supply chain
management.
A.
customer
excellence
B.
locational
excellence
C.
customer
loyalty
D.
value-based
pricing
E.
operational
excellence
24.
Marketers want their
firms to develop excellent supply chain management and strong supplier
relations so they can:
A.
persuade
stores to refuse to carry competitors’ products.
B.
use their
power within the supply chain to force weaker firms to accept less favorable
pricing.
C.
control
prices and lock in margins.
D.
create a
sustainable competitive advantage.
E.
justify
charging higher prices than competitors do.
25.
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:
A.
no single
strategy is likely to be sufficient to build a sustainable competitive
advantage.
B.
situation
analysis is a continuous process.
C.
customers
rarely remain loyal to companies.
D.
product
excellence is the only true source of a sustainable competitive advantage.
E.
innovation is
pointless because competitors will develop copycat offerings.
26.
“Effective
marketing doesn’t just happen.” It is:
A.
promoted
through STP analysis.
B.
possible only
for seasoned marketing executives to achieve.
C.
planned.
D.
introduced
through control phase SBUs.
E.
the result of
competitor’s failures.
27.
Carla has been
directed by her regional marketing manager to cut prices on seasonal items,
submit an ad in the local paper, and tell distributors to reduce deliveries
for the next month. Which step of the strategic marketing planning process is
Carla engaged in?
A.
evaluate
performance
B.
define the
business mission.
C.
situation
analysis
D.
implement
marketing mix and resources.
E.
identifying
and evaluating opportunities.
28.
When conducting a
SWOT analysis, in what phase of the strategic marketing process is an
organization presently engaged?
A.
planning
B.
implementation
C.
control
D.
segmentation
E.
metrics
29.
The automobile
manufacturing industry closely watches annual consumer satisfaction surveys.
For years, Japanese car companies consistently had the highest levels of
customer satisfaction, creating a ______ for these companies.
A.
strategic marketing
plan
B.
clear mission
statement
C.
cost
advantage
D.
sustainable
competitive advantage
E.
diversification
strategy
30.
Which of the
following is LEAST likely to provide a sustainable competitive
advantage?
A.
Lowering
prices.
B.
Having a
well-known brand name.
C.
Achieving
high levels of customer satisfaction.
D.
Using
patented technology.
E.
Creating an
efficient supply chain.
31.
Even when large
discount retailers enter a market, a few small, local retailers survive and
prosper. These small retailers have probably developed a(n) ________ that
allows them to survive.
A.
advertising
campaign
B.
plan to
evaluate results
C.
sustainable
competitive advantage
D.
set of
performance metrics
E.
SWOT analysis
32.
As part of her
company’s SWOT analysis, Valerie is assessing the company’s internal
environment, including:
A.
strengths.
B.
opportunities.
C.
strengths and
weaknesses.
D.
threats.
E.
opportunities
and threats.
33.
Samantha is charged
with assessing her company’s external environment as part of a SWOT analysis.
Samantha will study her company’s:
A.
strengths.
B.
opportunities.
C.
strengths and
weaknesses.
D.
weaknesses.
E.
opportunities
and threats.
34.
Manufacturers who
use just-in-time manufacturing systems coordinate closely with suppliers in
order to ensure that materials and supplies arrive just before they are
needed in the manufacturing process. While just-in-time systems can offer
major advantages in terms of inventory costs, they must be carefully managed.
If a firm found that its just-in-time system was badly managed, leading to
frequent manufacturing delays due to missing parts, this would represent a
__________ in a SWOT analysis.
A.
weakness
B.
opportunity
C.
threat
D.
strength
E.
business
mission
35.
For U.S. businesses
with strong export capabilities, expansion of U.S. trade agreements with
other countries creates:
A.
weaknesses.
B.
opportunities.
C.
strengths.
D.
threats.
E.
strategic
plans.
36.
In 2006, Ford Motor
Company announced it would severely cut back automobile production. For parts
companies supplying Ford Motor, this represented a(n):
A.
weakness.
B.
opportunity.
C.
strength.
D.
threat.
E.
strategic
plan.
37.
Lionel is asked to
conduct an STP analysis for his firm. The first step he should perform in
this analysis is to:
A.
develop a
business mission statement.
B.
choose the
best target markets.
C.
reposition
existing segments.
D.
divide the
marketplace into subgroups.
E.
conduct a
SWOT analysis.
38.
Recently, Walmart
announced it would begin selling organic food products. In doing so, Walmart
is probably trying to:
A.
gain government
subsidies.
B.
attract a
different market segment.
C.
reduce its
costs.
D.
save the
environment.
E.
offset
cost-based pricing pressure.
39.
For years, when
considering new products, marketers at Celestial Seasonings asked themselves,
“What would Stacy think?” Stacy was a fictional character
representing 25-50 year old, educated, upper-income women who rarely watched
television but did a lot of reading. “Stacy” represented
Celestial’s primary:
A.
demographic
segment.
B.
positioning.
C.
SBU.
D.
target market
segment.
E.
sustainable
competitive advantage.
40.
Many of today’s
college graduates will make their livings providing goods and services to
“baby boomers,” the large group of Americans born in the period
after World War II. Baby boomers are a _________________ market
segment.
A.
psychological
B.
behavioral
C.
social
D.
product-based
E.
demographic
True / False Questions
1.Strong supplier
relations and efficient supply chains help firms such as Walmart to achieve
operational excellence.
True False2.To build a sustainable
competitive advantage, companies should focus on a single strategy.
True False3.It is not always
necessary to go through all the steps in the marketing planning
process.
True False4.A mission statement
describes the specific actions a firm will take to achieve its goals.
True False5.iTunes software is
often credited for the success of the Apple iPod MP3 player, because it made
the iPod easier to use than competing players, and was difficult for
competitors to duplicate. This is an example of a sustainable competitive
advantage.
True False6.STP refers to
segmentation, testing, and promotion.
True False7.The components of a
SWOT analysis are Strengths, Weaknesses, Opportunities and Tactics.
True False8.Firms are typically
more successful when they focus on opportunities that build on their
competitors’ strengths.
True False9.Duke’s is a
surfer-themed restaurant chain in Hawaii. Most of its customers are tourists.
In a SWOT analysis for Duke’s, the possibility that the recession might cut
back on tourism in Hawaii would be considered a Weakness.
True False10.Price should be
based on the value that the customer perceives.
True False11.Geraldo manages the
electrical turbine engine division of General Electric Corporation. He makes
most decisions independently, without consulting headquarters. Geraldo
manages a strategic business unit.
True False12.The marketing
planning process always proceeds sequentially through the five steps.
True False13.Isaac is looking for
ways to offer new goods and services to his existing customers. He is
pursuing a market development strategy.
True False14.If Starbucks decided
to start selling organic meals to corporate eating facilities, it would be
pursuing a diversification strategy.
True False15.Sandisk’s MP3 player
product line (called the Sansa) has a low relative market share. The MP3
player market is expected to decline over the next few years. In BCG
portfolio analysis, the Sansa would be considered a dog.
True False16.The “Implement
Marketing Mix” step of the strategic marketing planning process is part
of the control phase.
True False
Multiple Choice Questions
17.If a firm wants to
develop a sustainable competitive advantage, it should:
A.begin an
aggressive campaign to buy up competitors.B.copy the
innovative features of other firms that are attractive to customers.C.examine its operations
and customer relations to identify significant things competitors cannot
easily copy.D.increase its
marketing budget so that it outspends its competitors.E.arrange to
meet with competitors to discuss how to avoid direct competition.18.Which of the
following is NOT one of the four overarching strategies to create and deliver
value and to develop sustainable competitive advantage?
A.Locational
excellenceB.Customer
excellenceC.Operational
excellenceD.Product excellenceE.Planning
excellence19.When Ramona, the
keynote speaker at a major business leaders’ conference, arrived in the
middle of the night at the Ritz-Carlton, she was exhausted and her suit was
wrinkled from her ten-hour plane trip. The night clerk found someone to dry
clean Ramona’s suit and have it ready for her morning presentation. She has
been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton
demonstrated the macro strategy of:
A.customer
excellenceB.operational
excellenceC.product
excellenceD.promotional
excellenceE.global
excellence20.Taking steps to
encourage customer loyalty is one way to:
A.test new
products.B.promote
efficiency.C.sustain an
advantage over competitors.D.develop new
pricing strategies.E.improve
supply chain effectiveness.21.Some banks have
begun offering special accounts designed to attract junior high school
students. These kids save in such small amounts that the accounts cost banks
more to maintain than they are worth. But bankers know that consumers are
creatures of habit and hope that the young people they serve now will become
adult customers. These banks recognize:
A.that
operational excellence is an important macro strategy.B.the lifetime
value of customers.C.that product
excellence leads to loyal customers.D.the
importance of making decisions based on short-term results.E.that as long
as customers bring in some revenue, costs do not matter.22.Narbonne’s, an
upscale department store, instructs sales personnel that whenever a customer
asks where something is, they should drop what they are doing and offer to
escort the customer to what they are looking for. The company’s reputation
for excellent customer service has probably resulted in:
A.product
design excellence.B.mission
statement satisfaction.C.sustainable
price decreases.D.a sustainable
competitive advantage.E.producer
excellence.23.Firms achieve
___________ through efficient procedures and excellent supply chain
management.
A.customer
excellenceB.locational
excellenceC.customer
loyaltyD.value-based
pricingE.operational
excellence24.Marketers want their
firms to develop excellent supply chain management and strong supplier
relations so they can:
A.persuade
stores to refuse to carry competitors’ products.B.use their
power within the supply chain to force weaker firms to accept less favorable
pricing.C.control
prices and lock in margins.D.create a
sustainable competitive advantage.E.justify
charging higher prices than competitors do.25.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:
A.no single
strategy is likely to be sufficient to build a sustainable competitive
advantage.B.situation
analysis is a continuous process.C.customers
rarely remain loyal to companies.D.product
excellence is the only true source of a sustainable competitive advantage.E.innovation is
pointless because competitors will develop copycat offerings.26.”Effective
marketing doesn’t just happen.” It is:
A.promoted
through STP analysis.B.possible only
for seasoned marketing executives to achieve.C.planned.D.introduced
through control phase SBUs.E.the result of
competitor’s failures.27.Carla has been
directed by her regional marketing manager to cut prices on seasonal items,
submit an ad in the local paper, and tell distributors to reduce deliveries
for the next month. Which step of the strategic marketing planning process is
Carla engaged in?
A.evaluate
performanceB.define the
business mission.C.situation
analysisD.implement
marketing mix and resources.E.identifying
and evaluating opportunities.28.When conducting a
SWOT analysis, in what phase of the strategic marketing process is an
organization presently engaged?
A.planningB.implementationC.controlD.segmentationE.metrics29.The automobile
manufacturing industry closely watches annual consumer satisfaction surveys.
For years, Japanese car companies consistently had the highest levels of
customer satisfaction, creating a ______ for these companies.
A.strategic marketing
planB.clear mission
statementC.cost
advantageD.sustainable
competitive advantageE.diversification
strategy30.Which of the
following is LEAST likely to provide a sustainable competitive
advantage?
A.Lowering
prices.B.Having a
well-known brand name.C.Achieving
high levels of customer satisfaction.D.Using
patented technology.E.Creating an
efficient supply chain.31.Even when large
discount retailers enter a market, a few small, local retailers survive and
prosper. These small retailers have probably developed a(n) ________ that
allows them to survive.
A.advertising
campaignB.plan to
evaluate resultsC.sustainable
competitive advantageD.set of
performance metricsE.SWOT analysis32.As part of her
company’s SWOT analysis, Valerie is assessing the company’s internal
environment, including:
A.strengths.B.opportunities.C.strengths and
weaknesses.D.threats.E.opportunities
and threats.33.Samantha is charged
with assessing her company’s external environment as part of a SWOT analysis.
Samantha will study her company’s:
A.strengths.B.opportunities.C.strengths and
weaknesses.D.weaknesses.E.opportunities
and threats.34.Manufacturers who
use just-in-time manufacturing systems coordinate closely with suppliers in
order to ensure that materials and supplies arrive just before they are
needed in the manufacturing process. While just-in-time systems can offer
major advantages in terms of inventory costs, they must be carefully managed.
If a firm found that its just-in-time system was badly managed, leading to
frequent manufacturing delays due to missing parts, this would represent a
__________ in a SWOT analysis.
A.weaknessB.opportunityC.threatD.strengthE.business
mission35.For U.S. businesses
with strong export capabilities, expansion of U.S. trade agreements with
other countries creates:
A.weaknesses.B.opportunities.C.strengths.D.threats.E.strategic
plans.36.In 2006, Ford Motor
Company announced it would severely cut back automobile production. For parts
companies supplying Ford Motor, this represented a(n):
A.weakness.B.opportunity.C.strength.D.threat.E.strategic
plan.37.Lionel is asked to
conduct an STP analysis for his firm. The first step he should perform in
this analysis is to:
A.develop a
business mission statement.B.choose the
best target markets.C.reposition
existing segments.D.divide the
marketplace into subgroups.E.conduct a
SWOT analysis.38.Recently, Walmart
announced it would begin selling organic food products. In doing so, Walmart
is probably trying to:
A.gain government
subsidies.B.attract a
different market segment.C.reduce its
costs.D.save the
environment.E.offset
cost-based pricing pressure.39.For years, when
considering new products, marketers at Celestial Seasonings asked themselves,
“What would Stacy think?” Stacy was a fictional character
representing 25-50 year old, educated, upper-income women who rarely watched
television but did a lot of reading. “Stacy” represented
Celestial’s primary:
A.demographic
segment.B.positioning.C.SBU.D.target market
segment.E.sustainable
competitive advantage.40.Many of today’s
college graduates will make their livings providing goods and services to
“baby boomers,” the large group of Americans born in the period
after World War II. Baby boomers are a _________________ market
segment.
A.psychologicalB.behavioralC.socialD.product-basedE.demographic
