Question 1

What is a marketing objective? Name three criteria for good marketing objectives.Use the criteria to write an objective for a business with which you are familiar.

Accepted Answer

The answer of What is a marketing objective? Name three...

Question 2

PepsiCo's annual report has the following statement: "Our business is to increase the value of our shareholder's investment.We do this through sales growth,cost controls and wise investment of resources.We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe,wholesome,economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity." This statement is an example of PepsiCo's:

Accepted Answer

A)  marketing mix strategy 
B)  quantifiable goal 
C)  mission statement 
D)  statement of economic potential 
E)  market segmentation strategy

Question 3

Fujisawa is Japan's seventh-largest pharmaceutical company.It sells drugs for organ transplant patients to increase the probability the new organ will operate efficiently and not be rejected.Currently,the only products Fujisawa makes are these organ transplant drugs,which it sells worldwide.Its patents protect it from competitors.Fujisawa has a:

Accepted Answer

A)  brand name advantage 
B)  niche competitive advantage 
C)  cost competitive advantage 
D)  marketing competitive advantage 
E)  complete competitive advantage

Question 4

NARRBEGIN: DeFeet International
DeFeet International
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.DeFeet branched from making socks for cyclists to making apparel for skiing,hiking,corporate sponsors,and kids.This is an example of which of Ansoff's strategic alternatives?

Accepted Answer

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

Question 5

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 6

With hospitals nationwide facing budget cuts and slimmer profit margins,Dekalb County's Medical Center decided to cash in on one of the most consistently profitable services--delivering babies.It initiated a three-year project to build a $55 million state-of-the-art women's center with 18 labor and delivery suites.When the hospital decided to commit its resources to obstetrics,it was engaging in:

Accepted Answer

A)  benchmarking 
B)  alternative problem solving 
C)  strategic planning 
D)  portfolio evaluation 
E)  tactical control

Question 7

_____ 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 8

NARRBEGIN: DeFeet International
DeFeet International
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.DeFeet's _____ is what its customers give up to obtain their apparel.

Accepted Answer

A)  product strategy 
B)  place strategy 
C)  price strategy 
D)  promotion strategy 
E)  positioning strategy

Question 9

The starting point of any firm's marketing mix is the:

Accepted Answer

A)  analysis of what production equipment is available and owned by the company 
B)  design of the promotion campaign to be used for the product 
C)  selection of the places through which the good or service will be sold 
D)  determination of the product's price,enabling future revenues and budgets to be estimated 
E)  development of the good or service to be sold

Question 10

SoBe nutritional beverages uses twin lizards on every bottle of its products and in all of its promotion efforts.It even has its own Team Lizard made up of skateboarders,mountain bike riders,and inline skaters that it sponsors.The lizard is used to remind consumers of the product and its benefits.To which of the four Ps does this represent?

Accepted Answer

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

Question 11

The four Ps of the marketing mix are product,planning,promotion,and price.

Accepted Answer

A) True 
 B)False

Question 12

A marketing audit is a(n):

Accepted Answer

A)  thorough,systematic,periodic evaluation of the objectives,strategies,structure,and performance of the marketing organization 
B)  financial examination of the firm's marketing performance 
C)  financial examination of the firm's accounting records performed by outside consultants 
D)  evaluation of the effectiveness of advertising 
E)  evaluation of pricing strategies across all the relevant competitors in an industry

Question 13

Heinz has announced that they plan to grow the company through an accelerated push into emerging markets such as China,Indonesia,and India in the next ten years.This is an example of:

Accepted Answer

A)  tactical objectifying 
B)  contingency plan 
C)  strategic planning 
D)  marketing implementation 
E)  horizon planning

Question 14

NARRBEGIN: DeFeet International
DeFeet International
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.DeFeet's _____ includes retailers and online retailers throughout the world.

Accepted Answer

A)  product strategy 
B)  place strategy 
C)  price strategy 
D)  promotion strategy 
E)  positioning strategy

Question 15

A competitive advantage is the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.

Accepted Answer

A) True 
 B)False

Question 16

_____ occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it.

Accepted Answer

A)  Synergy 
B)  Tunnel vision 
C)  Narrowcasting 
D)  Unempowerment 
E)  Marketing myopia

Question 17

NARRBEGIN: Delta Faucet
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 18

The focus of an organization's mission statement should be on:

Accepted Answer

A)  the products it wishes to sell 
B)  the market it wishes to serve 
C)  its social responsibilities 
D)  the desires of government regulators 
E)  technologies it understands well

Question 19

A portfolio matrix is a tool for allocating resources among products or strategic business units on the basis of relative market share and degree of innovation.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 2: Strategic Planning for Competitive Advantage

What is a marketing objective? Name three criteria for good marketing objectives.Use the criteria to write an objective for a business with which you are familiar.

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?

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

The starting point of any firm's marketing mix is the:

The four Ps of the marketing mix are product,planning,promotion,and price.

A marketing audit is a(n) :

Heinz has announced that they plan to grow the company through an accelerated push into emerging markets such as China,Indonesia,and India in the next ten years.This is an example of:

A competitive advantage is the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.

_____ occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it.

The focus of an organization's mission statement should be on:

A portfolio matrix is a tool for allocating resources among products or strategic business units on the basis of relative market share and degree of innovation.

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