Strategic Marketing (Mooradian/Matzler) Chapter 1: Overview of Marketing Strategy & the Strategic Marketing Proce 1) A firm that has

determined which customers to serve, where to conduct business, and how to meet customer needs has most likely developed a ________. A) profit analysis B) business portfolio C) marketing strategy ) public relations plan Answer! C iff! " #age $ef! " ") ________ is the logic by which a company hopes to achieve profitable customer relationships. A) %trategic &$ management B) #roduct differentiation C) Corporate branding ) 'arketing strategy Answer! iff! 1 #age $ef! " () )hat are the three basic elements of an effective marketing strategy* A) singularity, target segments, competitive advantages B) target segments, customer needs, geographic markets C) singularity, product differentiation, corporate resources ) competitive advantages, public relations, business models Answer! A iff! " #age $ef! " +) ________ is how a firm differentiates itself from competitors in a way that customers value. A) %egmentation B) iversification C) evelopment ) %ingularity Answer! iff! " #age $ef! " ,) According to marketing strategy e-pert 'ichael #orter, .Competitive strategy is about being ________.. A) efficient B) different C) superior ) satisfactory Answer! B iff! " #age $ef! "

1 / "01" #earson 1ducation, 2nc. publishing as #rentice &all

3) According to #eter rucker, which of the following is most essential to defining the purpose and strategy of a business* A) customer needs B) value added profits C) cross4cultural sales ) production efficiencies Answer! A iff! " #age $ef! "4( 5) A firm6s marketing concept should primarily focus on ________. A) educating potential buyers B) establishing product trends C) meeting specific customer needs ) reducing labor and production costs Answer! C iff! " #age $ef! "4( 7) $esearch indicates that a firm with an effective marketing4oriented strategy is more likely to e-perience higher ________. A) long4term profits B) production costs C) short4term profits ) start4up costs Answer! A iff! " #age $ef! ( 8) )hat are the two generic frameworks of most marketing strategies* A) niche scope, target segmentation B) competitive advantage, globali9ation C) customer intimacy, competitive scope ) competitive advantage, competitive scope Answer! iff! " #age $ef! ( 10) A marketing strategy of competitive advantages is typically based on either ________ or ________. A) mass global appeal: cost leadership B) cost leadership: differentiation C) segmentation: globali9ation ) differentiation: reliability Answer! B iff! " #age $ef! (

" / "01" #earson 1ducation, 2nc. publishing as #rentice &all

11) A firm with a marketing strategy of differentiation most likely sells a product with ;ualities that ________. A) competitors do not offer and that specific customers value B) competitors offer and that numerous customers demand C) a small segment of consumers demand at a low price ) a wide range of consumers perceive as convenient Answer! A iff! ( #age $ef! ( 1") )hich of the following is <1A%= likely to be used by a firm pursuing a marketing strategy of differentiation* A) reliability B) convenience C) performance ) cost leadership Answer! iff! " #age $ef! ( 1() )hich marketing strategy involves developing the lowest cost structure in order to earn higher margins* A) competitive scope B) cost leadership C) segmentation ) differentiation Answer! B iff! 1 #age $ef! ( 1+) =argeting very large markets is best known as ________ marketing. A) mass B) target C) niche ) strategic Answer! A iff! 1 #age $ef! ( 1,) )hich of the following marketing strategies is <1A%= likely to generate long4term success for a firm* A) differentiation in a mass market B) cost leadership in a niche market C) differentiation in a niche market ) cost leadership in a mass market Answer! B iff! ( #age $ef! (

( / "01" #earson 1ducation, 2nc. publishing as #rentice &all

13) )hich of the following involves identifying small segments of customers and serving their specific needs* A) customer advantage strategy B) brand leadership strategy C) customer intimacy strategy ) cost leadership strategy Answer! C iff! " #age $ef! ( 15) =he ;uality a customer receives ad>usted for the price a customer pays for a product is known as ________. A) perception B) dividend C) loyalty ) value Answer! iff! 1 #age $ef! , 17) A ________ is a graphical representation of the ratio between a product6s benefits and costs. A) data mine B) value map C) fair value matri) customer data graph Answer! B iff! " #age $ef! , 18) A product that falls within the fair value 9one of a value map is perceived by consumers as delivering benefits that are ________ the product6s cost. A) e;ual to B) less than C) greater than ) unrelated to Answer! A iff! ( #age $ef! , "0) A firm could most likely increase the perceived benefits of a product by ________. A) reducing the overall purchase price B) reducing the operating costs associated with the product C) adding maintenance costs associated with owning the product ) adding a desirable new feature to the product without increasing the purchase price Answer! iff! ( #age $ef! ,

+ / "01" #earson 1ducation, 2nc. publishing as #rentice &all

"1) According to a value4frontier framework, which of the following is <1A%= likely to be an effective long4term marketing strategy* A) high price, high performance B) high price, low performance C) low price, low performance ) low price, high performance Answer! B iff! " #age $ef! , "") )hich of the following is constantly pushing the value frontier towards higher ;uality and?or lower prices* A) innovation B) wage increases C) market e-pansion ) government spending Answer! A iff! " #age $ef! , "() )hich growth strategy involves selling more of a firm6s e-isting products to the firm6s e-isting markets* A) diversification B) market penetration C) market development ) product development Answer! B iff! " #age $ef! 3 "+) )hich growth strategy is most likely being used by a firm selling new products to e-isting markets* A) diversification B) market penetration C) market development ) product development Answer! iff! " #age $ef! 3 ",) A firm selling new products to new markets is most likely using a growth strategy of ________. A) diversification B) market penetration C) market development ) product development Answer! A iff! " #age $ef! 3

, / "01" #earson 1ducation, 2nc. publishing as #rentice &all

"3) )hich of the following best describes a growth strategy of market development* A) selling e-isting products to e-isting markets B) selling e-isting products to new markets C) selling new products to e-isting markets ) selling new products to new markets Answer! B iff! ( #age $ef! 3 "5) )hen =oys4$4@s opened Aids4$4@s and Babies4$4@s, the firm was using the method of ________. A) product development B) market penetration C) market development ) diversification Answer! A iff! " #age $ef! 3 "7) )hat is the first step in the strategic marketing and planning process* A) market segmentation B) product promotion C) situation assessment ) strategy formation Answer! C iff! " #age $ef! 5 "8) %trategic decisions primarily affect a firm6s ________. A) globali9ation B) marketing C) present ) future Answer! iff! 1 #age $ef! 3 (0) =he author of the te-t describes 2B'6s entry into the area of personal computers as an ________ strategic decision. A) ad ho B) insightful C) incompetent ) advantageous Answer! A iff! 1 #age $ef! 3

3 / "01" #earson 1ducation, 2nc. publishing as #rentice &all

(1) %ingularity in a marketing strategy asserts that firms should strive to be better than their competitors in all areas. Answer! BA<%1 iff! " #age $ef! " (") Bor most firms, a niche cost4leadership strategy is difficult to implement and sustain because scale is so closely linked to cost advantage. Answer! =$@1 iff! 1 #age $ef! ( (() A value frontier is based on customer perceptions of price and performance relative to other offerings in the marketplace. Answer! =$@1 iff! " #age $ef! , (+) A company can increase the perceived value of its product by increasing the perceived benefits, increasing the perceived costs, or a combination of the two. Answer! BA<%1 iff! ( #age $ef! , (,) According to the product4market growth framework, a firm6s strategic growth can only occur through market penetration. Answer! BA<%1 iff! " #age $ef! 3 (3) 1-plain the purpose of a value map, providing details about how the map should be interpreted. Answer! A manager would use a value map to track and manage the perceived value customers assign to a brand and the competitors6 brands. =he value map plots the product6s selling price against its relative performance. #roducts that fall in the fair value 9one of the map are perceived to have benefits that are e;ual to the product cost. #roducts that fall below the fair value 9one of a value map are perceived to deliver greater benefits than the product cost. #roducts that fall above the fair value 9one of a value map are perceived to deliver fewer benefits than the product cost. iff! ( #age $ef! ,

5 / "01" #earson 1ducation, 2nc. publishing as #rentice &all

(5) )hat is a marketing strategy* )hat ;uestions should a comprehensive marketing strategy answer* Answer! 'arketing strategy is about the .big picture. and whether the firm is! moving in the right direction, setting appropriate ob>ectives, competing for the right customers Cand avoiding those it should avoid): and developing the right skills, resources, and capabilities for success. A comprehensive marketing strategy specifies the who, what, when, where, why, and how of the business! 1. )ho the firm will serveDthe customers and segments the business will serve: ". )hen the firm will serve those customers and those needsDthat is, what .occasionCs). the firm will target: (. )here the firm will do businessDthe geographic markets the firm will serve: +. )hat needs the firm will meet: ,. &ow the firm will serve those customers and needsDthe means Cresources and distinctive competencies) the firm will bring to bear to serve those customers and their needs better than the competition: and 3. )hy the firm will do these things Dthe compelling business model that specifies how long term revenues will e-ceed costs by a reasonable rate of return on the capital employed. iff! ( #age $ef! 14" (7) )hat growth strategies are available to firms that want to e-pand their sales* Answer! Erowth strategies are based on relationships with e-isting company offerings and e-isting markets. At any given time a firm is selling its e-isting products to its e-isting markets. <ogically, growth can come from selling more of the firm6s e-isting products to its e-isting markets Cmarket penetration), selling e-isting products to new markets Cmarket development), selling new products to e-isting markets Cproduct development), or selling new products to new markets Cdiversification). iff! ( #age $ef! ,43

7 / "01" #earson 1ducation, 2nc. publishing as #rentice &all