Question 1

An essential part of marketing strategy is target market strategy.Selection of target market(s)drives marketing objectives and selection of the marketing mix (the four Ps).What are the three general strategies for selecting target markets?

Accepted Answer

The answer of An essential part of marketing strategy is...

Question 2

Everyone knows the brand name Maytag.Maytag is what many consumers think of when they think of home appliances.This widely recognized brand name is a source of:

Accepted Answer

A)  a product differentiation competitive advantage 
B)  a cost advantage 
C)  market augmentation 
D)  a niche competitive advantage 
E)  none of these things

Question 3

What is marketing myopia? If a movie theater company had a myopic orientation,how might it state its business purpose? If the movie theater company avoided a myopic orientation,how would its business purpose change?

Accepted Answer

The answer of What is marketing myopia? If a movie...

Question 4

Name and describe the three requirements for effective strategic planning.

Accepted Answer

The answer of Name and describe the three requirements for...

Question 5

Marketing plans should be written to do all of the following EXCEPT:

Accepted Answer

A)  compare actual and expected performance 
B)  provide clearly stated activities 
C)  create common goals for employees to work toward 
D)  allow managers to enter the marketplace with an awareness of possibilities and problems 
E)  control the elements of the external marketing environment

Question 6

InBev bought Anheuser Busch.How will this purchase affect InBev's marketing mix?

Accepted Answer

A)  It will only affect the product element of InBev's marketing mix. 
B)  It will only affect InBev's four Ps--not its marketing mix. 
C)  It will affect all of InBev's marketing mix elements,either directly or indirectly. 
D)  It will not affect the promotion or distribution elements of the InBev marketing mix. 
E)  It will have no affect on InBev's marketing mix.

Question 7

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.If you were to define DeFeet's mission which would be most appropriate?

Accepted Answer

A)  DeFeet makes socks. 
B)  DeFeet makes clothes for athletes. 
C)  DeFeet creates high-tech products for the serious athlete. 
D)  DeFeet provides the highest quality apparel for customers who demand the best. 
E)  DeFeet covers the world.

Question 8

Novartis,a Swiss drug maker,is planning to purchase a majority stake in Zhejiang Tianyuan Bio-Pharmaceutical Company,a Chinese vaccine maker.Novartis has agreed to pay $125 million for the company that holds a 3% share of China's $1 billion vaccines market.The market for vaccines is growing 20% or more in developing nations of Asia,Africa,and Australasia.In the past,vaccine use has been limited to basic shots against diseases such as polio,tuberculosis,and measles,but as the economies of these countries grow,government and private healthcare spending focuses on preventing diseases such as hepatitis B,cholera and rotavirus,tetanus,and others.Some critics are against the acquisition,claiming that prices will increase.Novartis claims it is not interested in raising prices but rather to expand Tianyuan's product offering
-Refer to Novartis.One thing Novartis plans to do is increase sales to governments and to the United Nations agencies because these are the typical buyers of vaccines to distribute in poor countries.Thus,the company is willing to give up short-term profits to increase market share for this company.In terms of the portfolio model,which basic strategy will Novartis be implementing?

Accepted Answer

A)  Hold 
B)  Harvest 
C)  Divest 
D)  Build 
E)  Divert

Question 9

Pure Digital Technologies created the Flip,a digital camera that is priced around $150.It filled a gap between expensive digital cameras and webcams.The Flip plugs straight into your computer and the video can easily be viewed and shared instantly.Creating a new product for a new market is called _____.

Accepted Answer

A)  divestment 
B)  segment development 
C)  target marketing 
D)  diversification 
E)  directed growth

Question 10

iTunes has a(n)_____ as it has exclusive agreements with some of the most sought-after music corporations that other digital music stores do not have.

Accepted Answer

A)  targeted market position 
B)  sustainable competitive advantage 
C)  strategic focus 
D)  situational strength 
E)  opportunistic privilege

Question 11

A marketing audit helps management allocate marketing resources efficiently.

Accepted Answer

A) True 
 B)False

Question 12

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's decision to make more stylish faucets represents a change in the _____ element of its marketing mix.

Accepted Answer

A)  product 
B)  promotion 
C)  place 
D)  production 
E)  distribution

Question 13

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.The reason for the introduction of this new style vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis,the technology used by these machines is an example of a(n):

Accepted Answer

A)  strength because it is part of Coke's external environment 
B)  advantage because it is part of Coke's marketing environment 
C)  weakness because Coke cannot control technology 
D)  opportunity because it is part of Coke's external environment 
E)  benefit because Coke has the resources to make use of the new technology

Question 14

The _____ is the unique blend of product,distribution,promotion,and pricing strategies designed to produce mutually satisfying exchanges with a target market.

Accepted Answer

A)  internal environmental mix 
B)  marketing mix 
C)  product mix 
D)  product line 
E)  market portfolio

Question 15

The harvest strategy is appropriate for all SBUs except dogs.

Accepted Answer

A) True 
 B)False

Question 16

The final postaudit task is to:

Accepted Answer

A)  profile existing weaknesses and inhibiting factors within the organization 
B)  judge and prioritize recommendations generated by the marketing audit 
C)  create an action plan with both short- and long-run proposals for improving overall marketing effectiveness 
D)  make someone accountable for implementing recommendations 
E)  ensure that the role of the audit has been clearly communicated

Question 17

In the mid-1980s,the market for teenage clothes was growing quickly,but jeans were out of fashion.Levi's re-launched their jeans,led by advertising for 501s,which had never been a fashionable jean style.Within a few months,sales factors had increased dramatically,turning a ______ into a star.

Accepted Answer

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

Question 18

Golden Valley Microwave Foods,Inc.is the manufacturer of ACT II popcorn.In its early years,the company had trouble financing the development and marketing of products for the microwave,so it chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn in supermarkets or grocery stores.Which element of the marketing mix was most influenced by this arrangement?

Accepted Answer

A)  Product 
B)  Place 
C)  Price 
D)  Public relations 
E)  Promotion

Question 19

Jiffy Mixes does not do any type of traditional advertising or use fancy packaging in marketing its products.The company stores its own wheat and makes its own flour and little blue boxes.Jiffy is an example of a low cost strategy based on:

Accepted Answer

A)  efficient labor 
B)  no-frills goods and services 
C)  government subsidies 
D)  product design 
E)  reengineering

Question 20

Compass is a United Kingdom-based catering company that has developed a marketing plan designed to make it the largest caterer in China within the next two decades.As part of its marketing _____,it has already begun serving meals on trains that run between Shanghai and Beijing.

Accepted Answer

A)  policy 
B)  implementation 
C)  evaluation 
D)  control 
E)  strategy

Exam 2: Strategic Planning for Competitive Advantage