Question 1

Hard Candy is a cosmetics company that markets the Palm Palette-all the makeup a "girl-on-the-go" needs without a cumbersome makeup bag. It comes in three shades-glam, funky, and girlies. Hard Candy targets women who are 20-somethings. Which one of Porter's generic business strategies is Hard Candy most likely using?

Accepted Answer

A) differentiation focus 
B) cost focus 
C) differentiation 
D) cost leadership 
E) profit enhancement

Question 2

Which of the following information is used in the development of the marketing program, the third step of the planning phase of the strategic marketing process?

Accepted Answer

A) marketing return on investment 
B) market-product grids with target segments and product groupings 
C) detailed plans to execute the marketing program 
D) market potential studies 
E) trends for industry and competitors

Question 3

Delphi Automobile Systems manufactures and sells satellite communications systems for automobiles that connect you and your car to 24-hour-a-day emergency service, direct you to a destination, and enable you to order a movie while on the road. Delphi Automobile Systems most likely uses

Accepted Answer

A) a cost leadership strategy. 
B) a cost focus strategy. 
C) a differentiation focus strategy. 
D) an innovation strategy. 
E) a differentiation strategy.

Question 4

Describe a time-based agenda, an action item list, and a program schedule. What are their similarities and differences?

Accepted Answer

The answer of Describe a time-based agenda, an action item...

Question 5

Share point refers to

Accepted Answer

A) the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. 
B) the percentage points of market share used as the common basis of comparison in an analysis to allocate marketing resources effectively for different product lines within the same firm. 
C) the sales revenue generated by different products within the firm expressed as a percentage. 
D) a measure of the quantitative value or trend of a marketing activity or result divided by the total marketing effort of the firm. 
E) the total number of a product sold in one year compared to the cumulative total sold since its introduction, expressed as a percentage.

Question 6

Key problems that emerge in a firm's strategic marketing process include: (1) bad news is filtered out as information goes up the line to give top management a very rosy picture; (2) plans are based on very poor assumptions about environmental forces; (3) __________; (4) too much time and effort may be spent on data collection and writing plans that are too complex to implement; and (5) line operating managers often feel no sense of ownership in implementing the plans.

Accepted Answer

A) there is poor communication between the firm and its stakeholders 
B) there is a lack of leadership 
C) although management says they are behind the plans, they do not allocate resources to the degree necessary for success 
D) planners and their plans may have lost sight of their customers' needs 
E) plans can be thwarted by disgruntled employees, other departments, or competitors

Question 7

Organizational groupings in which sales territories are subdivided according to location are referred to as

Accepted Answer

A) functional groupings. 
B) reseller groupings. 
C) geographical groupings. 
D) product line groupings. 
E) market-based groupings.

Question 8

The more a marketing plan is based on __________, the less uncertainty and fewer risks are associated with executing it.

Accepted Answer

A) opinions 
B) intuition 
C) facts and valid assumptions 
D) past historical data 
E) alternative contingencies

Question 9

Ben & Jerry's Homemade, Inc., is a profitable company that has a reputation for quality. The company is committed to treating its employees fairly and acting ethically in all transactions. It seeks to purchase all of its supplies from socially responsible suppliers. It is a leader in protecting the environment and corporate philanthropy. Ben & Jerry's uses

Accepted Answer

A) a value-driven strategy. 
B) marketing ROI. 
C) value analyses. 
D) value-based planning. 
E) value-added marketing.

Question 10

Developing a program schedule involves: (1) identifying the main tasks, (2) determining the time required to complete each task, (3) arranging the activities to meet the deadline, and (4) __________.

Accepted Answer

A) selecting a product champion 
B) assigning people the responsibilities to complete each task 
C) defining specific market segments 
D) creating marketing metrics to evaluate the results 
E) scheduling a follow-up meeting to evaluate the results

Question 11

Based on a market-product grid framework, which marketing strategy focuses on a single market segment but adds additional product lines?

Accepted Answer

A) full coverage 
B) market specialization 
C) product specialization 
D) selective specialization 
E) market-product concentration

Question 12

The information needed for the implementation phase of the strategic marketing process includes: (1) __________, (2) organizational charts, and (3) marketing research reports.

Accepted Answer

A) a time-based agenda and an action item list 
B) positioning studies 
C) market-product grids with target segments and product groupings 
D) detailed plans to execute the marketing program 
E) projected future sales, expenses, and profits

Question 13

Synergy analysis incorporates two business analysis tools, which are diversification analysis and

Accepted Answer

A) Porter's generic business strategy framework. 
B) the market-product grid framework. 
C) SWOT analysis. 
D) Porter's competitive advantage. 
E) share point analysis.

Question 14

Within DuPont's textile fiber department, there is a separate product manager for rayon, acetate, Orlon, nylon, and Dacron. The product manager for DuPont nylon would be responsible for

Accepted Answer

A) making long-range plans for nylon. 
B) maintaining the divisional mission statement. 
C) modifying DuPont's organizational structure. 
D) creating static marketing objectives. 
E) implementing short-term actions for all fibers.

Question 15

Office Max provides low product prices for products strictly classified as office supplies. In terms of Porter's generic business strategy, Office Max is most likely using a __________ strategy.

Accepted Answer

A) differentiation focus 
B) cost focus 
C) differentiation 
D) revenue leadership 
E) profit enhancement

Question 16

Reflecting on the research study of over 200 management tools and techniques, which of the following companies is an example of a firm that excels based on a performance-oriented culture?

Accepted Answer

A) Costco 
B) Google 
C) Coca-Cola 
D) Kodak 
E) Toyota

Question 17

List the three steps of the planning phase of the strategic marketing process. Briefly describe actions that make up each of the three steps. What information is collected in each step?

Accepted Answer

The answer of List the three steps of the planning...

Question 18

An action item list is an aid to implement a marketing plan that consists of four columns: (1) __________, (2) the person responsible for completing the task, (3) the date to finish the task, and (4) what is to be delivered.

Accepted Answer

A) the task 
B) the budget 
C) the product or service 
D) the points of difference 
E) the promotional message

Question 19

According to Porter's four generic business strategies framework, a __________ strategy focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments.

Accepted Answer

A) differentiation focus 
B) cost focus 
C) cost leadership 
D) differentiation 
E) supply focus

Question 20

A company that uses an organizational structure by marketing department, finance department, human resource department, etc., is most likely using __________ groupings.

Accepted Answer

A) functional 
B) reseller 
C) task-based 
D) product line 
E) market-based

Exam 22: Pulling It All Together: the Strategic Marketing Process