Question 1

Patents on prescription medications give pharmaceutical companies that own the patents a(n)_____ for 17 years until the patent expires.

Accepted Answer

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

Question 2

A marketing audit helps management allocate marketing resources efficiently.

Accepted Answer

A) True 
 B)False

Question 3

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 were 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. Products include socks, armskins, calfskins, boxer briefs, gloves, and shirts for the serious athlete. DeFeet has a custom department where socks, armskins, and gloves can be personalized 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 20 countries like Israel, Australia, Belgium, and the United States. More than two dozen online retailers also carry DeFeet products.
-Refer to DeFeet International.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 4

By defining its business as "printing books" instead of "empowering imaginations," a children's book publishing company would more than likely experience:

Accepted Answer

A)  market synergy 
B)  product entropy 
C)  market harvesting 
D)  nonspecific strategic planning 
E)  marketing myopia

Question 5

The 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 6

Clay Market began as a retailer of terra-cotta pots and garden figures imported from Turkey and Mexico.It has since added Turkish rugs and fabrics,leather-trimmed purses,and a line of women's clothes for its customers.These activities are indicative of a _____ strategy.

Accepted Answer

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

Question 7

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 8

Strategic planning is most effective when managers view it as an annual exercise.

Accepted Answer

A) True 
 B)False

Question 9

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 _____,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

Question 10

Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The Hallmark Company was inspired by the popularity of Jan Karon's best-selling novels about Mitford,a fictional town in the mountains of North Carolina,to develop a new line of products for Hallmark Gold Crown Stores nationwide.Hallmark created hundreds of Mitford-inspired products that authentically bring "the little town with the big heart" into tangible reality.The products include greeting cards,partyware and gift wrap,mugs,and puzzles for Hallmark's existing customers.Hallmark used a _____ strategy.

Accepted Answer

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

Question 13

Chrysler has a financial unit that is responsible for vehicle leases to consumers.It has a distinct mission,control over its resources,and plans independent of the other divisions of Chrysler.This financial unit is an example of a(n):

Accepted Answer

A)  organizational level 
B)  SWOT 
C)  secure business unit 
D)  business sales unit 
E)  strategic business unit

Question 14

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 15

The company's objective is to increase sales next year.This is an example of a well-stated objective.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are sources of a cost competitive advantage EXCEPT:

Accepted Answer

A)  reengineering 
B)  experience curves 
C)  break-even analyses 
D)  efficient labor 
E)  production innovations

Question 17

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 18

Everyone knows the brand name Kleenex.Kleenex is what many consumers think of when they think of tissues.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 19

The _____ is the unique blend of product,place,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 20

A _____ is defined as a statement of what is to be accomplished through marketing activities.

Accepted Answer

A)  mission statement 
B)  business plan 
C)  marketing objective 
D)  goal-driven directive 
E)  marketing criteria

Exam 3: Strategic Planning for Competitive Advantage

Patents on prescription medications give pharmaceutical companies that own the patents a(n) _____ for 17 years until the patent expires.

A marketing audit helps management allocate marketing resources efficiently.

By defining its business as "printing books" instead of "empowering imaginations," a children's book publishing company would more than likely experience:

The 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.

Clay Market began as a retailer of terra-cotta pots and garden figures imported from Turkey and Mexico.It has since added Turkish rugs and fabrics,leather-trimmed purses,and a line of women's clothes for its customers.These activities are indicative of a _____ strategy.

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:

Strategic planning is most effective when managers view it as an annual exercise.

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 _____,it has already begun serving meals on trains that run between Shanghai and Beijing.

Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

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

Chrysler has a financial unit that is responsible for vehicle leases to consumers.It has a distinct mission,control over its resources,and plans independent of the other divisions of Chrysler.This financial unit is an example of a(n) :

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

The company's objective is to increase sales next year.This is an example of a well-stated objective.

All of the following are sources of a cost competitive advantage EXCEPT:

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

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

A _____ is defined as a statement of what is to be accomplished through marketing activities.