Question 1

Arizona Tea is marketed by Vultaggio & Sons.Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs.The wide-mouthed,long-necked bottles are now considered to be trendsetters in the new age beverage industry,and customers often buy the tea just for the bottle.The success of Arizona Tea is based on:

Accepted Answer

A)  supply-demand curves 
B)  reengineering 
C)  a product differentiation competitive advantage 
D)  a cost competitive advantage 
E)  a heterogeneous marketing strategy

Question 2

To be useful,marketing objectives should be realistic,measurable,time specific,and based on sales.

Accepted Answer

A) True 
 B)False

Question 3

Coca-Cola drink 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 bought a drink.Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products.In terms of a SWOT analysis,this concern would be an example of a(n):

Accepted Answer

A)  weakness 
B)  strength 
C)  advantage 
D)  opportunity 
E)  threat

Question 4

A business unit that usually generates more than it needs to maintain its market share is called a(n)_____ in a portfolio model.

Accepted Answer

A)  star 
B)  cash cow 
C)  problem child 
D)  dog 
E)  independent

Question 5

Tide laundry detergent is the market leader,but overall industry growth is low in this market.Tide would be classified as a _____ in a portfolio model.

Accepted Answer

A)  star 
B)  cash cow 
C)  problem child 
D)  question mark 
E)  dog

Question 6

Delta Faucet Company
Masco is the name of a well-recognized company in the construction industry.It produces cabinetry,furniture,lighting,and plumbing fixtures for the upper-end homeowner and builder.One of the divisions of Masco is the Delta Faucet Company,which is the leader in the faucet industry.Delta Faucet was founded in 1955.Over the decades,it has developed a legacy based on well-crafted,high-quality products.Since the 1970s,Delta has focused its energies on building loyalty with the builder marketplace.Research in 2002 showed that while builders respect the Delta faucet for its quality,durability,and dependability,household consumers were not enamored with Delta products.Due to the number of new magazines and television programs devoted to home style,homeowners wanted faucets that were chic and stylish.This was not the image of the Delta Faucet.To change its image,Delta Faucet began a marketing program in which it committed itself to developing new products to appeal to homeowners.It adopted a new slogan,"Beautifully Engineered."
-Refer to Delta Faucet Company.Delta Faucet would most likely have gathered the information about how homeowners perceive its products through the use of a(n):

Accepted Answer

A)  break-even analysis 
B)  correlation analysis 
C)  sales potential assessment 
D)  situation analysis 
E)  economic forecast

Question 7

Aldi is a no-frills grocery chain.It sells grocery staples right out of crates and boxes with emphasis on low-priced,private-label brands.Aldi stores are typically about one-third the size of the traditional supermarket.By controlling expenses,Aldi enables its customers to save 30 to 50 percent compared to Kroger customers.The chain targets bargain hunters who are willing to rent a cart and bag their own groceries.Aldi has a(n)

Accepted Answer

A)  market-homogeneous focus 
B)  cost competitive advantage 
C)  product aggregation strategy 
D)  revenue-based competitive advantage 
E)  profit-enhanced advantage

Question 8

In the portfolio model,a business unit that has low growth potential and a small market share is called a(n):

Accepted Answer

A)  widow 
B)  problem child 
C)  cash cow 
D)  dog 
E)  bust

Question 9

_____ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach these objectives within the budget guidelines.

Accepted Answer

A)  Control 
B)  Implementation 
C)  Reengineering 
D)  Planning 
E)  Budgeting

Question 10

The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers.

Accepted Answer

A) True 
 B)False

Question 11

A market penetration strategy entails the creation of new products for current customers.

Accepted Answer

A) True 
 B)False

Question 12

In order to expand its sales into the U.S.market,BRL,an Australia-based winemaker,agreed to a merger with a U.S.-based wine distribution company.According to Ansoff's strategic opportunity matrix,BRL would be implementing a _____ strategy.

Accepted Answer

A)  diversification 
B)  market development 
C)  product development 
D)  divestment 
E)  product penetration

Question 13

_____ is the strategy of increasing sales by introducing new products into new markets.

Accepted Answer

A)  Product penetration 
B)  Product development 
C)  Market penetration 
D)  Market development 
E)  Diversification

Question 14

Earl is starting a new bank.Before their opening day Earl had a meeting with all employees.He discussed their mission,defined objectives for the bank for the coming years and shared who their target market is.He talked about their product offerings and where their future branches would be located.Earl is sharing the bank's:

Accepted Answer

A)  reengineering 
B)  hierarchical restructuring 
C)  financial analysis 
D)  marketing plan 
E)  strategic contingency planning

Question 15

Heinz is introducing 400 new products in the next two years.To know which markets to reach,Heinz should first perform a:

Accepted Answer

A)  market diversification analysis 
B)  market audit 
C)  social audit 
D)  market opportunity analysis 
E)  niche analysis

Question 16

The development of a target market strategy begins with a marketing audit.

Accepted Answer

A) True 
 B)False

Question 17

Typically,the development of the marketing mix starts with determining the promotion for a product.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are strategic alternatives that match products with markets EXCEPT:

Accepted Answer

A)  product development 
B)  market penetration 
C)  product penetration 
D)  diversification 
E)  market development

Question 19

John R.Harland Company is best known for printing checks.Its Financial Solutions division develops software for mortgage companies,which is a growing industry.This division is currently not producing at the desired level of profitability,but Harland plans to turn the division into a success by acquiring other companies that develop similar software.Harland would be engaging in a _____ strategy.

Accepted Answer

A)  harvesting 
B)  diversification 
C)  divesting 
D)  holding 
E)  building

Question 20

DeFeet International started as a cyclist sock company.The founder,Shane Cooper,said that the existing socks for cyclists were just not of great quality so he made socks for his cycling team by knitting them inside out.The socks were of special materials aimed at giving the cyclist the most comfortable fit.These socks were not the traditional white socks but bright,bold,and flashy colored socks with cool graphics.These high tech socks were priced around $10 a pair.Their web site says "DeFeet is Made for Driven Soles." Soon cycling elites like Lance Armstrong and Greg LeMond were sporting the DeFeet brand.The company branched into running,hiking and snow gear.Their products include socks,armskins,calfskins,boxer briefs,gloves,and shirts for the serious athlete.They also have a custom department where socks,armskins,and gloves can be customized with any motif including sponsor types of logos like Michelin,Pabst Blue Ribbon,or BP.Even kids can enjoy DeFeet's high quality socks.DeFeet's products can be found in retailers across the world,in more than twenty countries,like Israel,Australia,Belgium and the United States.More than two-dozen online retailers also carry their products.
-Refer to DeFeet International.DeFeet's _____ includes advertising,public relations,sales promotions,and personal selling.

Accepted Answer

A)  product 
B)  place 
C)  price 
D)  promotion 
E)  position

Exam 2: Strategic Planning for Competitive Advantage

To be useful,marketing objectives should be realistic,measurable,time specific,and based on sales.

A business unit that usually generates more than it needs to maintain its market share is called a(n) _____ in a portfolio model.

Tide laundry detergent is the market leader,but overall industry growth is low in this market.Tide would be classified as a _____ in a portfolio model.

In the portfolio model,a business unit that has low growth potential and a small market share is called a(n) :

_____ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach these objectives within the budget guidelines.

The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers.

A market penetration strategy entails the creation of new products for current customers.

In order to expand its sales into the U.S.market,BRL,an Australia-based winemaker,agreed to a merger with a U.S.-based wine distribution company.According to Ansoff's strategic opportunity matrix,BRL would be implementing a _____ strategy.

_____ is the strategy of increasing sales by introducing new products into new markets.

Heinz is introducing 400 new products in the next two years.To know which markets to reach,Heinz should first perform a:

The development of a target market strategy begins with a marketing audit.

Typically,the development of the marketing mix starts with determining the promotion for a product.

All of the following are strategic alternatives that match products with markets EXCEPT: